DWP new measures to prevent people fraudulently claiming PIP | Personal Finance | Finance

The Department for Work and Pensions (DWP) has affirmed its commitment to combating fraud and error within the benefits system, including the recovery of debts generated by Personal Independent Payments (PIP).

This was in response to a query from Conservative MP Sir John Hayes, who asked what steps the DWP is taking to “tackle people fraudulently claiming PIP”.

In a written reply, DWP Minister Andrew Western outlined new measures being implemented to “prevent fraud entering the system based on the types of cases and trends we have seen”.

These include “introducing more rigorous checks for customers changing personal details, including bank accounts” , reports the Daily Record.

Mr Western stated: “DWP is committed to tackling fraud and error in the benefits system and to the recovery of debts, including those generated by Personal Independent Payments. Working closely with counter fraud experts, the DWP has introduced measures to prevent fraud entering the system based on the types of cases and trends we have seen.”

New DWP measures to tackle benefit fraud

The Minister added: “DWP is delivering against key counter fraud activity, including investing in counter fraud professionals and building data analytical capabilities. The new Fraud, Error and Debt Bill will bring forward new measures to tackle fraud in the system.

“Details on the measures the Government will be legislating will be presented to Parliament in due course.”

The Department for Work and Pensions (DWP) provides benefits to over 23 million people across Great Britain, including 3.6 million on Personal Independence Payment (PIP). The most recent DWP report reveals that £90 million was lost to fraud and error in the PIP system in 2023/24.

Fraud and error within the welfare system currently cost taxpayers nearly £10 billion annually. Since the pandemic began, a total of £35 billion has been wrongly paid to those not entitled to it.

However, it’s crucial to note that this figure also includes criminal gangs, not just benefit claimants.

The next DWP fraud and error report is set to be published later this month. According to guidance on GOV.UK, fraud refers to claims where all three of the following conditions are met:

• the conditions for receipt of benefit, or the rate of benefit in payment, are not met
• the claimant can reasonably be expected to be aware of the effect on their entitlement
• benefit payment stops or reduces as a result of a review of the claim.

Claimant error refers to overpayments where claimants have provided inaccurate or incomplete information, or failed to report a change in their circumstances leading to an overpayment, but there is no evidence of fraudulent intent on the claimant’s part.

Official error occurs when benefits have been incorrectly paid due to a failure to act, a delay, or a mistaken assessment by the Department, a local authority, or His Majesty’s Revenue and Customs, to which no one outside of that department has materially contributed, regardless of whether the business unit has processed the information.

Mr Western stated last year that the forthcoming Fraud, Error and Debt Bill “will not give DWP access to any bank accounts, nor any information on how claimants spend their money”, clarifying that only “limited information” will be shared by banks with the Department for Work and Pensions (DWP) to aid in checking benefit eligibility by highlighting potential rule conflicts.

The DWP Minister insisted: “As set out by the National Audit Office, access to data is key to prevention and detection of incorrect payments. The Eligibility Verification Measure (EVM) in the proposed Fraud, Error and Debt Bill will not give DWP access to any bank accounts, nor any information on how claimants spend their money.”

He underscored the bill’s intent saying: “It will require banks and financial institutions to share limited information with the DWP to help verify benefit eligibility by flagging possible conflicts with eligibility rules – for example the £16,000 capital limit in Universal Credit. The information gathered will help DWP identify incorrect payments, prevent debts from accruing for the claimant and help identify where there may be fraudulent activity.”

Emphasising safeguards, he added: “The legislation will set out key safeguards, including reporting mechanisms and independent oversight. No benefit entitlement decision will be made solely because of the data obtained under EVM and a final decision on benefit entitlement will always involve a human agent.

“If a claimant wishes to challenge or appeal a benefit decision, they can do so following DWP’s appeals processes.”